Financial stocks rose 1.9% during the week that some of the U.S.’s biggest banks reported their Q2 earnings. The sector outpaced the broader S&P 500’s 0.9% gain.
With June’s CPI report signaling the disinflation trend is continuing, traders boosted their bets that the Federal Reserve will cut rates by 25 basis points in September. As a result, the yield on the 10-year Treasury dropped to 4.19% from 4.29% at the beginning of the week.
One of the biggest decliners was Wells Fargo (NYSE:WFC), which said its net interest income may fall 8%-9% in 2024, compared with its prior guidance of down 7%-9%. And the strongest climber was AI-powered lending platform Upstart Holdings (NASDAQ:UPST).
The top five gains by financial stocks with at least $2B market cap were logged by Upstart (UPST), which rose 17% in a week when it added another credit union partner to its roster;
Community Financial System (NYSE:CBU), up 14%;
The Bancorp (NASDAQ:TBBK), climbing 14%; the bank named Mark Tryniski, who served as president and CEO of Community Bank System from 2006 to 2023, to its board;
Provident Financial Services (NYSE:PFS) jumped 13%; and
ServisFirst Bancshares (NYSE:SFBS) powered up 12%.
The biggest decliners consisted of bitcoin mining data center owner Iris Energy (NASDAQ:IREN), sinking 18% for the week even as bitcoin rose 0.7% to ~$57.4K;
Wells Fargo (WFC), which dropped 5.2% as net interest income guidance and Q2 NII disappointed;
LPL Financial Holdings (NASDAQ:LPLA), down 4.5%,
Hong Kong-based brokerage Futu Holdings (NASDAQ:FUTU) dipped 3.3%; and
Blackstone Secured Lending Fund (NYSE:BXSL) slipped 3.0% for the week.
More on Wells Fargo and Upstart
Upstart surges, Wells Fargo flags as financial sector outpaces S&P: financial week #Upstart #surges #Wells #Fargo #flags #financial #sector #outpaces #financial #week
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Upstart surges, Wells Fargo flags as financial sector outpaces S&P: financial week – Journal Global Online
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